"In my maiden speech, I spoke about wanting to come into public life to make a difference. I was frustrated by what I saw - a lack of action - and I was determined to try and get things done," Baird told a press conference on Thursday morning.

"I said many times I didn't want to become a career politician - I wanted to go as hard as I could for as long as I could and then step aside. Well, today, I am making good on that pledge."

Fighting tears, Baird said talked of the "strong personal cost that comes in public life."

"I've probably felt that more than any other time in the past few months. My father and my mother and my sister are going through a very serious health challenge and, to be honest, at times I have been in pain not being able to spend the time that I should," he said.

Baird listed job creation and an "infrastructure boom" as his proudest achievements in office, but did not mention the controversial lockout laws, council amalgamations or greyhound ban which saw his once-soaring popularity plummet in recent months. He admitted NSW was a "basket case" before his team took office.

He said "I don't know what's next" for himself personally, but added "on a number of occasions over the past few years people have said, 'If you ever leave politics, come and talk to us.' Obviously, that's what I'll do."

Baird joined state parliament in 2007. After serving as treasurer, he became premier of NSW in 2014 following the resignation of Barry O'Farrell over accepting a bottle of wine from Australian Water Holdings CEO Nick Di Girolamo. Baird's team won the March 2015 election, but less than two years into his term Baird will step down.

His time as premier has been filled with controversy over Sydney's strict lockout laws and a ban on greyhound racing, as well as forcing councils to amalgamate and the fiercely opposed WestConnex road link through Sydney.